JSSM  Vol.5 No.4 , December 2012
Analysis of a Pricing Method for Elastic Services with Guaranteed GoS
ABSTRACT
Service Providers (SPs), which offer services based on elastic reservations with a guaranteed Grade of Service (GoS), should know how to price these services and how to quantify the benefits in different scenarios. This paper analyzes a method for evaluating the price of a service based on elastic reservations with a guaranteed Grade of Service. The method works as follows: First, the SP determines the requirements of the service that wants to offer; Second, the SP evaluates the average rate of the accepted elastic reservations of the service with a guaranteed GoS; Third, the SP calculates the price that guarantees the GoS with an aggregate demand function that depends on a demand modulation factor of the elastic reservations that is the mean reserved bandwidth, Bres; and Finally, the SP obtains the optimum value of the elasticity of the reservations that gives the maximum revenue, and the required access bandwidth in this case. The paper not only applies the method to a class i of elastic reservations when a linear-based demand and a revenue function are selected, but it also analyzes the influence of each one of the considered parameters. This method could be extended to the case of multiple classes of independent and guaranteed elastic services, applying the method to each service with its estimated demand and revenue functions.

Cite this paper
M. Postigo-Boix and J. Melús-Moreno, "Analysis of a Pricing Method for Elastic Services with Guaranteed GoS," Journal of Service Science and Management, Vol. 5 No. 4, 2012, pp. 386-402. doi: 10.4236/jssm.2012.54045.
References
[1]   B. Braden, et al., “Resource ReSerVation Protocol (RSVP), Version 1, Functional Specification,” RFC 2205, 1997. http://www.rfc-editor.org/rfc/pdfrfc/rfc2205.txt.pdf

[2]   R. Hancock, G. Karagiannis, J. Loughney and S. Van den Bosch, “Next Steps in Signaling (NSIS): Framework,” RFC 4080, 2005. http://www.rfc-editor.org/rfc/pdfrfc/rfc4080.txt.pdf

[3]   J. Manner, G. Karagiannis and A. MacDonald, “NSIS Signaling Layer Protocol (NLSP) for Quality-of-Service Signaling,” RFC 5974, 2010. http://www.rfc-editor.org/rfc/pdfrfc/rfc5974.txt.pdf

[4]   J. Ash, A. Bader and C. Kappler, “QoS-NSLP QSPEC Template”, RFC 5975, 2010. http://www.rfc-editor.org/rfc/pdfrfc/rfc5975.txt.pdf

[5]   M. Postigo-Boix and J. L. Melús-Moreno, “Influence of the Grade of Service in the Evaluation of the Mean Reserved Bandwidth for Elastic Services,” IEEE Communication Letters, Vol. 12, No. 2, 2008, pp. 143-145. doi:10.1109/LCOMM.2008.071659.

[6]   M. Postigo-Boix and J. Luis Melús, “Utilization-Based Prices for Elastic Services”, Computer Communications, Vol. 31, No. 14, 2008, pp. 3503-3509. doi:10.1016/j.comcom.2008.06.006.

[7]   M. Postigo-Boix and J. Luis Melús, “A Proposal for Pricing Substitute Guaranteed Services,” IEEE Communications Letters, Vol. 15, No. 1, 2011, pp. 100-102. doi:10.1109/LCOMM.2010.01.101336.

[8]   A. Ozdaglar, “Price Competition with Elastic Traffic,” Journal on Networks, Vol. 52, No. 3, 2008, pp. 141-155. doi:10.1002/net.20239.

[9]   G. Abbas, A. K. Nagar, H. Tawfik and J. Y. Goulermas, “Estimation Based Distributed QoS Pricing and Scheduling for Elastic Internet Services,” 2nd International Conference on Developments in eSystems Engineering (DESE), Abu Dhabi, 2009, pp. 89-98. doi:10.1109/DeSE.2009.15.

[10]   P. Dube and R. Jain, “Diffserv Pricing Games in MultiClass Queuing Network Models,” 22nd International Teletraffic Congress (ITC), 7-9 September 2010, Amsterdam, pp. 1-8. doi:10.1109/ITC.2010.5608737.

[11]   Z. G. Li, C. Chen and Y. C. Soh, “Pricing Based Differentiated Bandwidth Service,” 4th IEEE Conference on Industrial Electronics and Applications ICIEA 2009, Xi’an 25 27 May 2009, pp. 780-787. doi:10.1109/ICIEA.2009.5138310.

[12]   J. L. Van Den Berg, M. R. H. Mandjes and R. Nu?ez Quejia, “Pricing and Distributed QoS Control for Elastic Network Traffic,” Operations Research Letters, Vol. 35, No. 3, 2007, pp. 297-307. doi:10.1016/j.orl.2006.03.018.

[13]   G. Cheng, N. Ansari and S. Papavassiliou, “Adaptive QoS Provisioning by Pricing Incentive QoS Routing for Next Generation Networks,” Journal of Computer Communications, Vol. 31, No. 10, 2008, pp. 2308-2318. doi:10.1016/j.comcom.2008.02.019.

[14]   X. Wang and H. Schulzrine, “Pricing Network Resources for Adaptive Applications,” IEEE/ACM Transactions on Networking, Vol. 14, No. 3, 2006, pp. 506-519. doi:10.1109/TNET.2006.872574.

[15]   X. Chang and D. W. Petr, “A Survey of Pricing for Integrated Service Networks,” Journal on Computer Communications, Vol. 24, No. 18, 2001, pp. 1808-1818. doi:10.1016/S0140-3664(01)00327-9.

[16]   C. Courcoubetis and R. Weber, “Pricing Communication Networks Economics, Technology and Modelling,” Wiley, New York, 2003. doi:10.1002/0470867175.

[17]   C. A. Gizelis and D. D. Vergados, “A Survey of Pricing Schemes in Wireless Networks,” IEEE Communications Surveys & Tutorials, Vol. 13, No. 1, 2011, pp. 126-145. doi:10.1109/SURV.2011.060710.00028.

[18]   S. Park, S. Han and S. W. Cho, “User Utility Discovery for Priority-Based Network Resource Pricing,” Computers and Industrial Engineering, Vol. 56, No. 4, 2009, pp. 1357-1368.doi:10.1016/j.cie.2008.08.010.

[19]   S. Kalyanasundaram, E. K. P. Chong and N. B. Shroff, “Optimal Resource Allocation in Multi-Class Networks with User-Specified Utility Functions,” Computer Networks, Vol. 38, No. 5, 2002, pp. 613-630. doi:10.1016/S1389-1286(01)00275-4.

[20]   J. Kuri and S. Roy, “Pricing Network Resources: A New Perspective,” International Conference on Wireless Communications, Networking and Mobile Computing, Shanghai, 21-23 September 2007, pp. 1937-1940. doi:10.1109/WICOM.2007.485.

[21]   T. Li, D. Y. Iraqi and R. Boutaba “Pricing and Admission Control for QoS-Enabled Internet,” Computer Networks, Vol. 46, No. 1, 2004, pp. 87-110. doi:10.1016/j.comnet.2004.03.020.

[22]   M. H. Ahmed, “Call Admission Control in Wireless Networks: A Comprehensive Survey,” IEEE Communications Surveys & Tutorials, Vol. 7, No. 1, 2005, pp. 50-69. doi:10.1109/COMST.2005.1423334.

[23]   J. Hou, J. Yang and S. Papavassiliou, “Integration of Pricing and Call Admission Control to Meet QoS Requirements in Cellular Networks,” IEEE Transactions on Parallel and Distributed Systems, Vol.13, No. 9, 2002, pp. 898-910. doi:10.1109/TPDS.2002.1036064.

[24]   M. Baglietto, R. Bolla, F. Davoli, M. Marchese and M. Mongelli, “A Proposal of New Price-Based Call Admission Control Rules for Guaranteed Performance Services Multiplexed with Best Effort Traffic,” Computer Communications, Vol. 26, No. 13, 2003, pp. 1470-1483. doi:10.1016/S0140-3664(03)00032-X.

[25]   O. Yilmaz and Ing-Ray Chen, “Utilizing Call Admission Control for Pricing Optimization of Multiple Service Classes in Wireless Cellular Networks,” Computer Communications, Vol. 32, No. 2, 2009, pp. 317-323. doi:10.1016/j.comcom.2008.11.001.

[26]   E. W. Fulp, D. S. Reeves, “Bandwidth provisioning and Pricing for Networks with Multiple Classes of Service,” Computer Networks, Vol. 46, No. 1, 2004, pp. 41-52. doi:10.1016/j.comnet.2004.03.018.

[27]   J. Elias, F. Martignon, A. Capone and G. Pujolle, “A New Approach to Dynamic Bandwidth Allocation in Quality of Service Networks: Performance and Bounds,” Computer Networks, Vol. 51, No. 10, 2007, pp. 2833-2853. doi:10.1016/j.comnet.2006.12.003.

[28]   U. Savagaonkar, E. K. P. Chong and R. L. Givan, “Online Pricing for Bandwidth Provisioning in Multi-Class Networks,” Computer Networks, Vol. 44, No. 6, 2004, pp. 835-853. doi:10.1016/j.comnet.2003.12.011.

[29]   N. Jin, S. Jordan, “The Effect of Bandwidth and Buffer Pricing on Resource Allocation and QoS,” Computer Networks, Vol. 46, No. 1, 2004, pp. 53-71. doi:10.1016/j.comnet.2004.03.023.

[30]   Y.-M. Li, “Pricing Digital Content Distribution over Heterogeneous Channels,” Decision Support Systems, Vol. 50, No. 1, 2010, pp. 243-257. doi:10.1016/j.dss.2010.08.027.

[31]   R. Hassin and M. Haviv, “To Queue or Not to Queue,” Springer, Boston, 2003.

[32]   K. Talluri and G. Van Ryzin, “The Theory and Practice of Revenue Management,” Kluwer Academic Publishers, Dordrecht, 2005.

[33]   L. Kleinrock, “Queueing Systems, Vol. I: Theory,” John Wiley and Sons, New York, 1975.

[34]   M. Abramowitz and I. A. Stegun, “Handbook of Mathematical Functions with Formulas, Graphs, and Mathematical Tables,” Dover, New York, 1972.

 
 
Top